LONDON (Alliance News) - Ophir Energy PLC said Thursday that it will acquire certain Southeast Asian assets from Australian oil and gas company Santos Ltd for USD205 million in cash.
The oil and gas exploration company also said that current operations are performing in line with expectations and the company's existing production is expected to average 11,500 barrel of oil equivalent per day in 2018 and generate funds of USD90 million.
The portfolio of assets being acquired include material producing assets in Vietnam and Indonesia and exploration assets in Malaysia, Vietnam and Bangladesh.
"It is a declared strategic objective of Ophir to re-balance its asset base and become free cash flow positive in order to consider regularly returning capital to shareholders. This transaction accelerates the realisation of this goal," Nick Cooper, chief executive officer, said.
"The acquired assets also offer an attractive combination of operational upside and material cost synergies with our existing Southeast Asian production base," he added.
Ophir Energy expects to finance the acquisition through existing financial resources and a new 18-month acquisition bridge facility of up to USD130 million. The loan is expected to be subsequently refinanced into the company's existing RBL loan facility.
Ophir shares were trading 6% higher at 63.00 pence each in morning trade.